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Risk Disclosure

Version: 2026-06-09.v2 · Last updated: 2026-06-09
# MarkovLab — Options & Derivatives Risk Disclosure

_Last updated: 2026-06-09_

## Substantial risk of loss

Trading options, spreads, and other derivatives involves a high degree of risk
and is not suitable for every investor. You can lose the entire premium paid on
long positions and, on uncovered or short positions, you can lose substantially
**more** than your initial investment. Margin requirements can change without
notice and may force the liquidation of positions at unfavourable prices.

Before trading options you should read the Options Clearing Corporation booklet
*"Characteristics and Risks of Standardized Options"* (or the equivalent risk
disclosure required by your broker and your local regulator) and ensure you fully
understand the risks involved.

## Probabilities and scores are model estimates

All probabilities, "P(non-touch)", "no-touch", "wheel-safe", reliability, PARS,
confidence, and similar metrics presented by MarkovLab are **model-derived
estimates** computed from historical data, implied-volatility surfaces, and
regime classifications. They do **not** guarantee any outcome. Real-world results
frequently deviate materially from model predictions — especially around
earnings, macroeconomic events, illiquidity, gaps, and regime transitions.

## No personalized recommendation

"FAVOURABLE / NEUTRAL / CAUTION / NOT RECOMMENDED" annotations, "Best Entry"
suggestions, ranked screens, "Trade ↗" actions, and similar UI elements are
model output and scenario analysis. They are **not** personalized investment
advice and do **not** consider your specific financial situation, objectives, or
risk tolerance.

## Past performance

Past performance of any backtest, regime model, strategy, or scenario is not
indicative of, and does not guarantee, future results.

## Broker connections and order initiation

MarkovLab can read live option chains and account data through brokerage APIs
(such as Tradier and Alpaca) when you authorize a connection. Where your broker's
API supports it and you explicitly initiate an order, the Service may transmit
that order to your connected broker for execution — but **execution, clearing,
and settlement are performed by your broker, not by MarkovLab.** You are solely
responsible for every order you initiate and for verifying it in your broker
before and after submission. Market, broker, or data outages may delay or prevent
order transmission.

## Technology and data risk

Software may contain bugs, experience outages, or produce incorrect results. Data
feeds may be delayed, inaccurate, or unavailable. Do not rely on the Service as
your sole source of information.

## Seek independent advice

Consider seeking advice from a licensed financial professional in your
jurisdiction before acting on any output from this software. You trade at your own
risk and are responsible for your own decisions.
For educational and informational purposes only. Not investment advice. Options involve substantial risk and are not suitable for all investors.

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